c>  ^4?^- 


^.-^ 


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IMAGE  EVALUATION 
TEST  TARGET  (MT-S) 


1.0 


I.I 


IM 


11:25   i  1.4 


■^  KiS    12.2 

Sim  ■- 
1.6 


Pnotographic 

Sciences 
Corporation 


23  WEST  MAIN  STREET 

WEBSTER,  NY.  14580 

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CIHM/ICMH 
Microfiche 


CIHM/ICMH 
Collection  de 
microfiches. 


Canadian  Institute  for  Historical  Microreproductions  /  Institut  Canadian  de  microreproductions  historiques 


Technical  and  Bibliographic  Notes/Notes  techniques  et  bibliographiques 


The  institute  has  attempted  to  obtain  the  best 
original  copy  available  for  filming.  Features  of  this 
copy  which  may  be  bibliographically  unique, 
which  may  alter  any  of  the  images  in  the 
reproduction,  or  which  may  significantly  change 
the  usual  method  of  filming,  are  checked  below. 


D 


Coloured  covers/ 
Couvenure  de  couleur 


I      I    Covers  damaged/ 


Couverture  endommagde 

Covers  restored  and/or  laminated/ 
Couverture  restaurie  et/ou  pellicuiie 

Cover  title  missing/ 

Le  titre  de  couverture  manque 

Coloured  maps/ 

Cartes  gdographiques  en  couleur 


D 
D 
D 
D 


n 


n 


Coloured  ink  (i.e.  other  than  blue  or  black)/ 
Encre  de  couleur  (i.e.  autre  que  bleue  ou  noire) 

Coloured  plates  and/or  illustrations/ 
Planches  et/ou  illustrations  en  couleur 

Bound  with  othar  material/ 
Reiii  avec  d'autres  docjments 

Tight  binding  may  causa  shadows  or  distortion 
along  interior  margin/ 

Lareliure  serree  peut  causer  de  I'ombre  ou  de  la 
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appear  within  the  text.  Whenever  possible,  these 
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lors  dune  restauration  apparaissent  dens  le  texte. 
mais,  lorsque  cela  dtait  possible,  ces  pages  n'ont 
pas  6t4  filmdes. 

Additional  comments:/ 
Commentaires  suppldmentaires; 


L'Iristitut  a  microfilm*  le  meilleur  exemplaire 
qu'il  lui  a  eti  possible  de  se  procurer.  Las  details 
dc  cat  exemplaire  qui  sont  peut-dtre  uniques  du 
pomt  de  vue  bibiiographique.  qui  peuvent  modifier 
une  image  reproduite,  ou  qui  peuvent  exiger  une 
modification  dans  \a  .r.ethode  normale  de  filmage 
sont  indiquds  ci-dessous. 


I      I    Coloured  pages/ 


Pages  de  couleur 

Pages  damaged/ 
Pages  endommag^es 

Pages  restored  and/or 

Pages  restaurdes  et/ou  pelliculdes 

Pages  discoloured,  stained  or  foxec 
Pages  d6color6es,  tachetdes  ou  piquees 

□    Pages  detached/ 
Pages  ddtachees 


□    Pages  damaged/ 
Pages 

I      j    Pages  restored  and/or  laminated/ 
r^/j    Pages  discoloured,  stained  or  foxed/ 


ly  I    Showthrough/ 


Transparence 


□    Quality  of  print  varies/ 
Quaiiti  indgale  de  I'impression 

□    Includes  supplementary  material/ 
Comprend  du  materiel  supplemen 


pplementaire 


r     I    Only  edition  available/ 


D 


Seuie  ddition  disponible 

Pages  wholly  or  partially  obscured  by  errata 
slips,  tissues,  etc.,  have  been  refilmed  to 
ensure  the  best  possible  image/ 
Les  pages  totalement  ou  partiellement 
obscurcies  par  un  ^euillet  d'errata.  una  pelure. 
etc.,  ont  6t6  fUmdes  d  nouveau  de  facon  a 
obvenir  la  meillsure  image  possible. 


This  item  is  filmed  at  the  reiiuction  ratio  checked  below/ 
Ce  document  est  film*  au  taux  de  reduction  indiqu*  ci-dessous. 
lOX  14X  1RX  22X 


26X 


30X 


/ 


12X 


16X 


20X 


24X 


28X 


32X 


The  copy  filmed  here  has  heen  reproduced  thanks 
to  the  generosity  of: 

Seminary  of  Quebec 
Library 

The  images  appearing  here  are  the  best  quality 
possible  considering  the  condition  and  legibility 
of  the  original  copy  and  in  keeping  with  the 
filming  contract  specifications. 


Original  copies  in  printed  paper  covers  are  filmed 
beginning  with  the  front  cover  and  ending  on 
the  last  page  with  a  printed  or  illustrated  impres- 
sion, or  the  back  cover  when  appropriate.  All 
other  original  copies  are  filmed  beginning  on  the 
first  page  with  a  printed  or  illustrated  impres- 
sion, and  ending  on  the  last  page  with  a  printed 
or  illustrated  impression. 


The  last  recorded  frame  on  each  microfiche 
!«ihall  contain  thn  symbol  — ♦■  (meaning  "CON- 
TINUED"), or  the  symbol  V  (meaning  "END"), 
whichever  applies. 

Maps,  plates,  charts,  etc.,  may  be  filmed  at 
different  reduction  ratios.  Those  too  large  to  be 
entirely  Included  in  one  exposure  are  filmed 
bisginni^g  in  the  uppsr  left  hand  corner,  left  to 
right  and  top  to  bottom,  as  many  frames  as 
required.  The  following  diagrams  illustrate  the 
method: 


L'examplaire  filmi  fut  reproduit  grAce  d  la 
ginirositi  de: 

S^minaire  de  Quebec 
Bibliothdque 

Les  images  nuivantes  ont  4td  raproduites  avec  le 
plus  grand  soin,  compta  tenu  de  la  condition  et 
de  la  netteti  de  I'exemplaire  film6,  et  en 
conformity  avec  les  conditions  du  contrat  de 
filmage. 

Les  exemplaires  originaux  dont  la  couverture  en 
papier  est  imprim^e  sont  film^s  en  commenqant 
par  le  premier  plat  et  en  terminant  soit  par  la 
dernidre  page  qui  comporte  une  empreinte 
d'impression  ou  d'illustration,  soit  par  le  second 
plat,  selcn  le  cas.  Tous  les  autres  exemplaires 
originaux  sont  film^s  en  commenpant  par  la 
premidre  page  qui  comporte  une  empreinte 
d'impression  ou  d'illustration  et  en  terminant  par 
la  derniire  page  qui  comporte  une  telle 
empreinte. 

Un  des  symboles  suivants  apparaitra  sur  la 
dernidre  image  de  chaque  microfiche,  selon  le 
cas:  le  symbols  — «►  signifle  "A  SUIVRE",  le 
symbols  V  signifie  "FIN". 

Les  cartes,  planches,  tableaux,  etc.,  peuvent  dtre 
film^s  A  des  taux  de  reduction  diff^rents. 
Lorsque  le  document  est  trop  grand  pour  dtre 
reproduit  en  un  seul  cliche,  il  est  film6  i  partir 
de  Tangle  supdrieur  gauche,  de  gauche  d  droite, 
et  de  haut  en  bas,  en  prenant  le  nombre 
d'images  n^cessaire.  Les  diagrammes  suivants 
illustrent  la  m^thode. 


1 

2 

3 

4 

5 

6 

^ 


Z^jS 


r 


7 


ii. 


II 


^f.  ■'!:   ,  JU<UQ<-u 


CANADIAN  AGGRESSION 


UPON 


AMERICAN  COMMERCE, 


AND 


THE    INJUSTICE   OF   APPLYING 


The    Long   and   Short    Haul   Rule 


TO 


TRANSCONTINENTAL  TRAFFIC. 


By  JOSEPH  NIMMO,  Jk. 


/' 


^.         _^<:^  J  WASHINGTON 

'^^f're  d®iu>i«'^'  Bros.,  Printer 


s  ANu  Bookbinders. 


•'  \ 


i8SS. 


Editorial  Notice  from  the  Chicago  Inter-Ocean  of  Sept.  8,  1888. 

OUR  COMMERCIAL  RELATIONS  WITH  CANADA. 

The  communication  from  Mr.  Nimmo,  which  is  published  in  The  Inter- 
Oceaii  of  to-diiy,  deserves  not  only  perusal  but  study.  So  far  as  concerns 
the  immediate  cause  of  its  being  written,  the  article  has  no  claim  to  con- 
sideration, but  the  fundamental  facts  brought  out  ought  to  challenge  the 
attention  of  the  country.  Congress  is  charged,  under  the  Constitution, 
with  the  duty  of  passing  such  laws  as  the  commercial  interests  of  the 
country  demand,  and,  as  Mr.  Nimmo  shows,  this  duty  is  being  neglected; 
Great  Britain  is  pursuing  her  traditional  policy  in  Canada  and  British 
Columbia  offostering  her  own  commerce  by  liberal  subsidy,  rail  and  steam- 
ship, and  gradually  getting  a  large  share  of  the  transcontinental  transit  of 
the  United  States. 

No  one  can  blame  the  Canadian  and  the  Imperial  Governments  for  fol- 
lowing this  course.  It  is  the  business  of  every  nation  to  look  after  its  own 
interest.  But  this  country  should  have  a  little  of  the  same  kind  of  com- 
mon sense,  and  protect  it3  own  transportation  interest  from  foreign  en- 
croachment. The  facts  presented  lead  logically  tc  the  recommendations 
made.  Nothing  can  be  hoped  for  in  the  direction  of  National  commercial 
protection  from  such  a  President  as  Grover  Cleveland,  but  with  Benjamin 
Harrison  in  the  Exticutive  Mansion  there  will  be  a  real  statesman  at  the 
head  of  our  public  affairs,  one  who  knows  enough  to  appreciate  the  im- 
portance of  not  allowing  a  foreign  power  to  build  up  its  own  commerce 
and  at  our  expense. 

The  enormous  subsidy  to  the  Canadian  Pacific  Railroad,  $130,000,000, 
was  dictated  primarily  by  a  wholesome  desire  to  be  independent  of  the 
United  States  in  transportation  and  travel  between  the  remote  portions  of 
British  America,  but  it  is  now  coming  to  ')e  used  as  a  link  in  that  mighty 
chain  wherewith  Great  Britain  aims  to  bind  the  world  in  bonds  of  com- 
mercial  subjugation  and  make  all  nations  pay  tribute  to  British  capital. 
The  country  has  an  easy  and  efficient  remedy,  if  only  disposed  to  apply  it, 
as  Mr.  Nimmo  points  out.  Correct  the  abuse  of  the  privilege  of  transit 
in  bond  and  the  evil  would  be  averted  by  substantially  confining  the  busi- 
ness of  the  Canadian  Pacific  to  Canadian  and  British  business.  This, 
however,  must  not  be  done  in  a  way  to  put  our  shippers  at  the  mercy  of  a 
domestic  railway  pool,  but  rather  under  a  judicious  exercise  of  the  power 
of  Congress  to  regulate  not  only  commerce  between  the  States,  but  with 
foreign  countries.  The  treaty-making  power  must  not  be  allowed  to  usurp 
the  prerogative  of  Congress  as  the  law-making  department  of  the  govern- 
ment, which  was  what  the  fisheries  treaty  attempted  to  do.  The  rejection 
of  that  treaty  was  a  preliminary  step  toward  carrying  out  the  policy  out- 
lined hv  Mr.  Nimmo. 


CANADIAN    AGGRESSION    UPON    AMERICAN 
COMiMERCE,  &c.,  &c. 

To  the  Editor  of  the  Inter-  Ocean : 

It  is  a  compliment  to  he  controverted  by  ,  leadinj?  journal  of  a 
gieatc.y  and  ni  this  view  I  should  hi^dUy  apprec  ate  a  recent 
cd.tc.nal  m  the  St.  Paul  Pioneer  Press  upon^ny'   uS^I  stX 

;!nt    he  :  l^"''  ?;  ?"■  '^""""""  ^^-^^r  hut  tor  tU       t 
.the  ed.to    o    that   paper  refutes  certain  views  which  he  im- 

1  lia\e  puhhcly  expressed  and  earnestlv  desire  to  inculcate        In 

l^!!!^""!!''^  '"f  '"  ''  '^"^"[  "*'<^'""'»''='  the  /V.«..^/V..v.  also  mis- 
takes both  my  temper  and  purpose.  As  I  am  particularly  desirous 
of  being  understood  by  the  people  of  the  Northwest,  I  beg  leave 
to  address  to  The  Intek-Ockan  this  communicatio,;,  express  ve 
at  once  of  my  judgment  and  feeling  upon  the  subject.  In  mv 
pamphlet  above  mentioned  I  have  spoken  at  some  le.u.th  and 
with  some  degree  o  particularity  of  the  traffic  over  the  new  lines 
ftom  Duluth  to  Sault  Ste.  Marie  and  from  Minneapolis  to  Sa  d 
Ste.  Mane,  over  the  Grand  Trunk  Railway  from  Chicago  to  Port 
Huron,  and  over  the  Michigan  Central  Railroad  and  the  several 

PaS  TJT'^'T'f  '^r'  i'T}^'  ^'^"^^'^^^''  ''"'-^  '^'^  Canadian 
1  ac ific,  the  Grand  1  runk  and  the  Canada  Southern.     I  have  dis- 

inctly  stated  that  the  traffic  over  these  routes  is  "mutually 
beneficial  to  the  interests  of  transportation  and  of  trade  in  the  two 
countriesj  that  it  subserves  important  interests  in  our  North- 
western States  and  New  England  States ;  and.  in  order  not  to  l)e 
misunderstood,  I  add  that  such,  traffic  "  is  characterized  by  con- 
ditions  of  a  true  reciprocity  "  (see  pages  6  and  7). 

And  vet  the  editor  of  the  Pioneer  Press  assumes  that  I  am  in 
tavor  of  the  total  abolition  of  the  ••  transit  trade."  So  lon^  as 
peace  exists  between  the  two  countries— and  may  it  never  be 
broken— I  cannot  imagine  a  condition  of  affiiirs  which  would  ren- 
der a  suspension  ot  this  particular  branch  of  the  "  transit  trade  " 
necessaiy  or  desirable.  I  am  also  glad  to  know  that  the  Northern 
1  acihc  Railroad  Company  is  about  to  secure  running  arraiiL-e- 
nients  over  the  new  Manitoba  Railroad.     That  trafKc  will  also  be 

'  characterized  by  conditions  of  a  true  reciprocity,"  and  as  such 
stand  upon  its  own  merits. 

I  am  likewise  in  accord  with  the  Pioneer  Press  in  the  general 
proposition  that  it  matters  not  whether  the  capital  with  which  our 
railroads  are  built  comes  from  Enghmd  or  France  or  Germany  or 
Canada  or  trom  the  pockets  of  our  own  people  ;  but  the  editor  of 
that  paper  assumes  that  I  entertain  the  opposite  opinion. 


•#/ 


•#/ 


_  Naturally,  then,  the  question  might  be  asked  :  If  sucii  are  your 
views  what  are  you  hnng  at   in  your  accusations  against  tiie'Do- 
nunionot  Canada   and   against  the   Canadian   Pacific   Railway^ 
1  Hat  IS  just  the  question  I  wish  to  answer,  and  I  shall  try  to  pre- 
sent the  subject  Ml  a  clear  light  by  means  of  an  illustration. 

The  Case  Ii-lustrated. 
Suppose  the   State  of  Pennsylvania    should    grant   a    charter 
lor  a  new    radroad    to    cost    $159,000,000,    lend    and    giye    it 
^30.000,000,    grant  it   all    the  land   it    might  need,    and    then 
back   It  up   m  ever  fight  with  rival  railroads  to  the  full  extent 
of   tlic  hnancia    and   political   powers  of  the   State— in  a  word 
embark    tull    tdt    into    the    railroad    business,   making  the   sup- 
posititious railroad  corporation  a  mere  agency  of  the  State.     Is  it 
not  perfectly  evident   that  this   State   road,   with  such  backin-, 
would  in  a  few  years  be  able  to  force  the   Pennsylvania  Railroad 
Company  into  bankruptcy,  and  to  absorb  it,  with  all   its  lateral 
lines  from   the  Atlantic  seaboard  to  St.  Louis  and  Chicago.?     In 
hkeinanner,  the  ownership  of  all  the  other  railroads  in  Pennsyl- 
vania could  be  secured.     If  this  State  railroad  monopoly  should 
continue  tc  pursue  an  aggressive  policy  by  reducing  competitive 
rates  to  the  bare  cost  of  moving  trains,  neighboring  corporations 
like  the  Baltimore  and  Ohio  and  the  New  York,  Lake  Erie  and 
Western  would  in  time  grow  dizzy  and  tumble  into  the  maw  of 
tiie great  1  ennsylvania  octopus.     Is  it  not  evident  that  this  would 
give  a  new   phase   to   the  entire   railroad  system   of  the   United 
States,  and  is  it   not  also  clear  that  our  present  interstate  com- 
merce law  could  not  be  equitably  or  justly  administered  under 
such  a  state  of  affairs.?     That  law  is   intended  for  the  regulation 
of    railroad   corporations,   not  for   the   regulation   of  creators  of 
railroad  corporations   like  the  great  State   of   Pennsylvania,  in- 
vested witli  sufficient  financial  and  political  power  to  take  half  a 
dozen  of  our  strongest  trunk  lines  by  the  throat  and  shake  them 
to  death. 

The  Actual  Case  which  Confronts  Us. 
But  such  a  state  of  afiairs,  in  an  even  more  objectionable  form, 
confronts  us  along  our  Northern  frontier  from  the  Adantic  to  the 
iacific,  in  the  Canadian  Pacific  Railway  Company,  the  alter  eiro 
ot  the  government  of  the  Dominion  of  Canada.  "  That  railroad 
cost  $159,000,000;  the  Canadian  government  has  aided  it  to  the 
extent  of  $130,000,000.  bestowed  upon  it  an  enormous  land  grant, 
conceded  to  it  extraordinary  monopoly  privileges,  and  now  stands 
beiiind  It  to  the  extent  of  its  financial  and  political  powers  in  all 
Its  competitive  struggles  with  American  transportation  lines  on 
the  ianu  and  on  the  sea.  Fron.  the  'dme  it  was  opened  it  has 
been  alile,  as  the   result  of  such  governmental  backing  alone,  to 


6 

dictate  terms  to  American  railroads  in  tiieir  ti;artic  between  the 
Pacific  coast  and  the  States  east  of  the  Mississippi  river.  Pur- 
sninjr  always  an  a^gresMve  policy,  it  proceeds  to  secure  the  own- 
ership ot  parallel  lines  in  the  (Jnited  States  at  the  West,  and  after 
securmjr  the  rifjht  of  way  for  a  line  throuj^ii  the  State  of  Maine, 
with  the  object  clearly  in  view  of  diverting  trade  from  New  York, 
iJoston  and  Portland,  to  St.  Johns  and  Halifax,  the  Dominion 
government  proceeds  to  subsidize  that  line  to  the  extent  of 
$tSr).o(X}  a  year  from  St.  Lawrence  river  to  Mattavvamkea<j. 

Hesides  all  this  the  Canadian  and  British  governments'  have 
subsidized  a  steamer  line  between  the  western  terminus  of  the 
Canadian  Pacific  Railway  and  China  and  Japan  to  the  amount  of 
$300,ocx)  a  year,  as  against  a  compensation  of  $14,820  per  an- 
num paid  by  the  L'nited  States  for  its  China  and  Japan  postal 
service,  which  service  is  at  least  four  hundred  times  as  greatas  the 
postal  service  perfornu  d  by  the  competing  Hritish  line.  Is  it  not 
perfectly  apparent  that  this  whole  scheme  for  the  promotion  of 
the  commercial  and  political  designs  of  the  Canadian  and  Hritish 
governments  presents  no  aspect  of  free  trade  or  of  reciprocal 
trade?  It  would  be  an  ellipsis  to  call  if  pro/cc^ed  trade .  It  is 
not  trade  at  all.  It  is  simply  a  scheme  of  premiums  paid  by  two 
allied  Hritish  governments  to  a  Canadian  railroad  company  and  a 
Hritish  steamer  line  to  grasp  a  certain  portion  of  the  internal  and 
foreign  commerce  of  the  United  States,  with  the  object  distinctly 
in  view  of  breaking  down  American  commercial  enterprise  and 
of  absorbing  the  commerce  on  both  sides  of  the  boundary  line. 

Thk  Interstate  Commekch  Law  cannot  he  beneficiai.i.v 
Administered  in  the  face  ok  such  Interference  hv  the 
Canadian  and  British  Governments. 

Is  it  not  perfectly  apparent  that  such  interference  by  the  Cana- 
dian and  British  governments  in  our  transportation  affairs  intro- 
duces a  new  phase  into  the  conduct  of  the  transportation  interests 
of  the  United  States,  utterly  vitiating  the  scheme  of  regulations 
formulated  in  our  interstate  commerce  act?  That  law,  as  be- 
fore stated,  was  intended  for  the  regulation  of  competing  railroad 
corporations,  not  for  the  regulation  of  States,  much  less  for  the 
regulation  of  a  jealous  and  aggressive  foreign  government  em- 
ploying its  political  powers  for  the  absolute  control  of  a  part  of 
our  internal  and  foreign  commerce,  and  under  no  sort  of  obli- 
gation of  conformity  to  our  municipal  law.  The  Constitution  of 
the  United  States  provides  that  "  Congress  shall  have  power  to 
regulate  commerce  among  the  States  and  with  foreign  countries," 
and  it  is  an  offence  to  our  National  pride  that  a  foreign  govern- 
ment should,  by  direct  or  indirect  means,  exercise  that  power. 
Manifestly  no_  scheme  of  railroad  regulation  can  be  beneficially 
administered  in  this  country  so  long  as  we  allow  a  foreign  gov- 


crnment  to  run  n  saw  cut  clean  throufjh  oin-  plans  at  will.  The 
difhculties  of  the  case  naturally  arise  from  the  clashing  of  an  a<r- 
gressivc  governmental  railroa.l  system  of  a  foreign  coinitrv  witli 
our  own  railrf)a(l  system  ereated  and  operated  hy  private^'iiter- 
priscand  at  all  times  subject  to  public  scrutiny  and  governmental 
restramt. 

The  Interstate  Commerce  Commission  has  projected  its  func- 
tions across  the  Atlantic  Ocean,  legally  1  assume,  and  why  not 
across  the  Pacific  Ocean  ?  Hut  an  attempt  to  apply  the  long  and 
short  haul  rule  to  our  China  trade  in  the  face  of  the  subsidy 
granted  to  the  competing  British  line  would  be  as  absurd  as  an 
attempt  to  apply  it  to  railroads  which  compete  with  Canadian 
railroads  built  by  the  Dominion  government,  and  in  the  face  of 
the  determined  purpose  of  that  government  to  back  its  lines  up 
\yith  the  whole  force  of  its  Hnancial  and  political  powers,  in  all 
their  competitive  struggles  with  American  railroads.  The  at- 
tempt to  enforce  that  rule  upon  our  railroads  exposed  to  such 
competition  would  simply  be  to  throw  the  power  of  our  own  gov- 
ernment on  the  side  of  Canadian  aggression. 

The  Q^jkstion  in  its  Political  Aspects. 
The   facts  thus  set  forth   clearly  indicate  that   Canadian  and 
liritish  competition  with  American  transportation  interests  is  a 
political  rather  than  a  commercial  question,  and,  therefore,  one 
which  should  engage  the  earnest  attention  of  the  people  and  the 
Congress  of  the  United  States.     Perhaps  the  most  obnoxious  fea- 
ture ot   the  Hritish-Canadian  attempt  to  capture  American  com- 
merce has  not  yet  been  stated.     The  political  phase  of  that  ag- 
gressive move  is  accentuated  by  a  British  fortress  and  naval  sta- 
tion at  Esquimault,  on  the  Island  of  Vancouver,  opposite  and  in 
sight  of  our  shores.     This  Esquimault  military  establishment  is  a 
concrete  expression  of  British  imperial  confederation,  althou<di 
ostensibly  tor  the  protection  of  British  Columbia,  a  colony  havin<r 
less  than  halt  uie  population  of  little  Washington  Territory,  which 
IS  just  thinking  about  gaining  admission  into  the  Union  as  a  State. 
It  is^  characterized   by  Lord  Lansdowne,  late  Governor  General 
of  Canada,  as  "one  of  the  greatest  and  most  important  strono-- 
holds  of  the  empire,"  and  Captain  Colomb,  of  the  British  Army 
says:  "It  holds  a  pistol  to  the  head  of  San  Francisco."     The 
great  port  of  New  York  is  nothing  like  so  strongly  defended.  But 
this  whole  politico-commercial  scheme  is  eminently  British.    Eng- 
land's militiry  lum  always  covers  her  commerce,  and  when  she 
wishes  to  establish  a  new  trade  she  sticks  her  guns  out  in  front  of 
It.     The    intimate    connection   between    British    commerce   and 
British  military  power  is  strikingly  illustrated  in  the  new  steamer 
City  of  New  Tork,  which  is  built  according  to  plans  approved 
by  the  British  Government,  and  in  such   manner  that  she  can  be 


/i 


8 


convcMtod  int<Min  armt'<l  cniisfr  and  tiMiisport  in  two  weeks.  In 
considc-ratioii  of  l)einjr  so  coiistnictcd.  and  of  licing  at  all  times 
subject  to  the  connnand  of  the  A(hniraltv,  she  receives  a  special 
annual  subsidy,  the  an)ount  of  which  is  not  puhliclv  known.  And 
this  IS  the  case  with  respect  to  all  the  fast  British  steamers  en- 
{,'a^ed  in  our  transatlantic  commerce. 

To  allow  a  foreign  country  to  exploit  upon  our  commercial  and 
transportation  interests  in  the  manner  hereinhefore  described  in 
tile  case  of  the  Dominion  of  Canada,  without  adoptinjr  measures 
tor  avoiding  the  et^'ects  of  such  ajrjr,essi<jn,  would  be  almost  as 
disgraceful  as  to  allow  a  foreign  government  to  make  such  cap- 
tures by  means  of  its  military  power,  without  show  of  resistance. 
Ihc  honor  and  dignity  of  the  country,  as  well  as  our  commercial 
interests,  jire  concerned  in  this  matter.  No  State  of  the  Union 
would  desire  the  continuance  of  such  aggression,  even  though  it 
might  alVord  her  some  incidental  advantages,  any  more  than  the 
State  of  Massachusetts  would  allow  a  profitable  tea-trade  at  Bos- 
ton in  1775  at  the  expense  of  political  usurpation. 

Attitude  Assumed  hv  Canada  toward  the  United  States. 

The  pertinent  question  arises.  What  do  vou  propose  to  do  about 
it.^  I  answer,  first  discuss  it,  and  let  the  people  of  the  United 
States  know  tiie  exact  nature  of  our  Canadian  relationships,  and 
the  character  of  the  methods  and  expedients  to  which  the  gov- 
ernment of  the  Dominion  of  Canada  is  having  recourse  in  its 
etlbrts  to  snatch  from  us  a  part  of  our  internal  and  foreign  com- 


merce. 

The  United  States  is  a  verv 


.  arge  part  of  the  world  to  Canada, 
l)ut  Canada  is  a  very  small  part  of  the  world  to  the  United  States. 
As  a  Nation,  we  know  much  more  about  England,  or  Germany, 
or  France,  or  Brazil,  or  China,  tlian  we  do  about  Canada. 

Let  us  glance,  for  a  moment,  at  a  few  facts  illustrative  of  tlie 
attitude  assumed  by  the  Dominion  of  Canada  toward  the  United 
States.  And  first  I  would  state  that  in  the  face  of  the  relations 
of  reciprocity  known  as  "  the  transit  trade,"  under  which  Canada 
is  enabled  to  ship  every  conceivable  domestic  and  foreign  product 
across  our  territory  without  payment  of  duty,  she  absolutely  re- 
fuses to  rllow  American  fishermen  to  ship  across  her  territorv  fish 
which  has  >  been  caught  in  the  Atlantic  ocean  far  bevond  the  terri- 
torial jurisdiction  of  any  country,  and  such  refusal" is  based  upon 
the  flimsy  pretext  of  the  proximitv  of  the  fishing  grounds  to 
Canadian  territory.  The  absurdity 'and  rank  injustice  of  this  as- 
sumption has  for  months  been  reiterated  in  Congress  and  in  the 
public  press,  and  the  President  of  the  United  States  at  last  deemed 
it  his  duty  oflicially  to  announce  to  Congress  and  to  the  country 
his  disapproval  of  this  outrageous  denial  of  our  commercial  rights. 
The  astonishing  feature  of  the  business  is  that  the  reciprocal  right 


offrrc  transit  across  the  two  countries  is  worth  more  than  a  hun- 
dmi  tnncs  as  much  to  Cana.la  as  it  is  to  the  Initecl  States,  not 
only  (lunuK  the  seven  or  eight  months  when  the  St.  Lawrence 
route  Ksch.sed  hy  ,ce  and  fog,  hut  also  (Uning  the  period  when 
tliat  route  is  open  to  commerce. 

Second.  JJy  act  of  I'arliament,  in  the  year  .879,  the  Canadian 
government  otiered  to  place  certain  products  of  the  Unite  State 
up""-her  free  list "  whenever  the  United  States  should  place 
snnilar  Canadian  products  upon  our  ''  free  list."  This  otler  wis 
.'.ccepted  l,y  act  of  Congress  In  .8S3,  hut  for  a  long  time  Canada 
neglected  to  ohserve  her  part  of  the  compact ;  Hnally  she  yiehled 
.  leluctant  compliance  m  April  last,  after  several  diplomati'c  notes 
i.pon  the  suhject  had  passed  l.etween  the  two  countries. 

I  lurd.  I'or  several  years  Canada  has  persistcil  in  imposin<r  cer- 
tain  discrimmatmg  entry  fees  upon  American  vessels  in  the  face 
ot  tlu-  manifest  spirit  and  intent  of  the  treaty  of  Washington. 

iM.urth.  In  the  year  ,878,  hv  act  of  Congress,  we  ofFered  to 
allow  Canadian  wrecking  vessels  to  come  to  the  relief  of  Canadian 
'.cssels  m  distress  in  Americ  u.  waters,  provided  Canada  w.)uld 
allow  American  wrecking  vessels  to  go  to  the  relief  of  American 
V  tssels  in  Canadian  waters,  hut  as  yet  the  ofVer  is  refused,  although 
It  appeals  to  considerations  of  humanity.  ^ 

in-Ifin!';  ^;*'';'-''.^:''^''  y^^''^  P^'-^t  ^-^^^^'^la  has  persisted  in  a  discrim- 
nat.ng  toll  of  iS  cents  per  ton  upon  her  canals  in  favor  of  vessels 
hound  to  Mon  real.  This  discrimination  against  American  ports 
•s  in  open  violation  of  Art.  XXIX  of  the  treaty  of  Washiniton. 
Since  January  last,  protest  has  heen  made  against  this  practice  in 
Congress  and  in  the  puhl.c  press,  and  the  President,  in  his  recent 
special  message,  has  also  in  this  case  deemed  it  his  duty  ofticiallv 
to  announce  to  Congress  and  the  country  his  sense  of  the  wronf' 
thus  perpetrated  upon  the  United  States.  ^    . 

Sixth    The  people  of  the  Northwest  know  perfectly  well  that 
(^anada  has  thrown  every  possible  obstacle  in  the  way  8f  allowinu- 

American  transportation  companies  the  privilege  of  carrying  goods 

om  one  part  of  Canada  to  another  part  of  Canada,  although  in 

he  conduct  of  the  ;'  transit  trade  "  the  -  Grand  Trunk  "  and  the 

Canadian  I  acihc     are  living  upon  traffic  between  difterent  parts 

rs\ll^w^.;r  n  r  I  1  t-^  have  elsewhere  remarked,  Canada 
s  allowed  to  dip  her  ladle  into  our  big  dish,  while  refusing  us  the 
pnyilege  of  dippmg  our  spoon  into  her  little  dish.  But  rc-ciproc- 
ity  m  good  faith  in  this  matter  is  incompatible  with  the  Canadian 
determina  ion  to  grasp  American  commerce  in  the  manner  here- 
mbefore  described.  The  Grand  Trunk  and  Canadian  Pacific 
Railway  Companies  have,  by  direct  and  indirect  methods,  been 
miabled  to  secure  extensions  to  their  lines  in  the  States  of  Maine, 
New  Hampshire,  Vermont,  Michigan,  Indiana,  Illinois,  Wiscon- 
sin, and  Minnesota,  but  American  railroad  companies  are  unable 


10 


to  secure  reciprocal  privilecres  in  Canada.  Canada  has  no  general 
railroad  law,  and  it  is  certain  that  no  American  line  could  secure 
a  charter  for  a  road  which  would  compete  with  any  one  of  her 
trunk  lines.  But  the  fact  that  tiiose  lines  are  so  heavily  subsidized 
by  the  Dominion  government,  alone  prevents  foreign  competition. 

The    Manitoba    Connkctjon    of    the    Northern    Pacific 
Railroad  the  Result  of  Political  Revolt. 
The  people  of  the  Northwest  well  know  that  the  connections 
recently  tormcxl  by  the  Northern   Pacific   Railroad  with  the  Red 
River  Valley  Railroad  is  simply  the  result  of  a  revolt  by  the  peo- 
ple of  Manitoba  against  the   Dominion  government.     The  par- 
liament of  that  province,  under  a  threat  of  secession,  nullified  the 
act  ot  the  Dominion  parliament,  which  gianted  the  monopoly  ot 
radroad  construction   to  the  Canadian  Pucific.     Such  a  revolt  in 
this  countiy  would  have  been  opnosed  by  the  Army  of  the  United 
states.     But  the  Dominion  government  is  nothing  more  or  less 
than  a  loose-jointed  autocracy,  with  a  monarchical  feather  in  its 
cap.     It  can   bluster  and   fall  back,  and  perform  political  antics 
which  the  people  of  the  United  States  would  not  for  a  day  toler- 
ate in  their  National  Government.     The  ownership  and  control 
ot  the  Canada  Southern  Railroad  by  the  dominant  interest  in  the 
Michigan  Central  and  the  New  York  Central  and  Hudson  River 
Railroad  Companies  has  been  mentioned  as  an  exception  to  the 
asserted  exclusion  of  American   railroads  from  Canada,  but  the 
contro    of  that  line  was   acquired   before   the   Dominion  govern- 
ment had  embarked   in  the  railroad   business  as  a  fundamental 
part  ot  Its  national  polity. 

The  people  of  Spain"  call  Cuba  their  "  milch  cow,"  and  the 
people  of  Canada  for  a  very  different  reason  appear  to  regard  the 
United  States  as  their  milch  cow.  In  the  latter  case  the  spirit  of 
aggression  appears  to  be  the  result  of  the  fact  that  the  Canadians 
are  a  small  and  ambitious  people,  neighbored  by  a  great  and  ma«^- 
nanimous  nation,  which  has  not,  and  never  has  had,  an  afiirma- 
tive  foreign  policy. 

The  Historic  Origin  of  Canadian  Aggression. 
In  the  year  1S48  the  Canadian  government  completed  a  line  of 
ciinals  which  overcame  the  obstacles  to  navigation  between  Lake 
line  and  the  St.  Lawrence  river  at  Montreal.  The  superiority 
of  this  route  to  the  Erie  Canal  route  was  loudly  asserted  upon  the 
grounds  that  "  it  was  the  natural  highway  of  commerce"  between 
the  West  and  the  seaboard,  notwithstanding  the  fact  that  the 
Canadian  improvements  to  navigation  cost  rather  more  than  did 
the  Erie  Canal.  But  six  months  of  ice  and  about  two  months  of 
fog  in  the  river  and  Gulf  of  St.  Lawrence  leave  only  about  four 
months  of  safe  and  relia])le  navigation.     Therefore  the  Canadian 


1 


11 

water-line  has  failed  to  meet  the  demands  of  the  bounding  West. 
Besides,  the  American  railroad  system  has  placed  that  route  in 
ec  ipse,  and  Montreal  has  in  consequence  become  an  inconsider- 
able factor  in  the  competition  with  New  York  and  Boston  for  the 
foreign  commerce  of  this  country.  Perceiving  the  failure  of  her 
water-line  with  the  indomitable  energy  of  the  British  race,  Canada 
next  turned  to  the  railroad,  and  during  the  last  fifteen  years  she 
has  been  employing  it  toward  the  accomplishment  of  her  original 
purpose  and  to  the  full  extent  of  her  powers. 

Rkmedies  Propo.sp:d. 

But  the  question  recurs,  What  do  you  propose  to  do  about  it' 
1  reply  generally— respond  to  eacli  refusal  to  reciprocate  and  re- 
^  taliate  in  each  case  of  absolute  aggression  ;  but  in  no  case  over- 
step  the  bounds  of  a  temperate  and  just  vindication  of  our  rights 
Our  self-respect  as  a  great  nation  dictates  that.  I  do  not  wish  to 
be  dogmatic  m  my  utterances  touching  specific  measures,  and  vet 
It  appears  proper  to  state  plainly  the  expedients  which,  in  mv 
judgment,  ought  to  be  adopted  for  the  protection  of  American  in- 
terests and  the  vindication  of  the  honor  and  dignitv  of  the  countrv 

I.  1  recommend  that  a  discriminating  duty  be  laid  on  all  im* 
ports  from  China  and  Japan  and  other  foreign  countries  through 
British  Columbia  and  over  the  British  Canadian  Pacific  Railway 
and  I  think  the  duty  ought  to  be  just  high  enough  to  offset  the  pre- 
mium paid  by  the  Canadian  and  British  governments  to  their 
I  acific  ocean  steamer  line  and  to  the  Canadian  Pacific  Railway 
in  order  to  enable  those  lines  to  force  American  commerce  frr.m 
American  steamships,  American  seaports,  and  American  rail- 
roads. 

2.   I   would   recommend   the   passage  of  a    law  tbrbidding  the 
transportation  of  goods  free  of  duty  fVom  our  Pacific  coast  ports 
to  points  in  the  United   States  east  of  the  Rocky  Mountains  by 
steamer   to  Port  Moody,  and  thence  east  to  destination  over  the 
L^anadian  1  acihc  Railway  and  lines  in  this  country.     Besides  the 
objection  to  this  sort  of  traffic  upon  the  commercial  and  political 
grounds  hereinbefore  set  forth,  it  is  an  improper  mode  of  admin- 
istering our  customs  service.     Its  looks  too  much  like  abrogating 
our  customs  laws  in  the  interest  of  a  foreign  government  to  allow 
transfers  of  miscellaneous  dutiable  goods  to  be  made  from  vessel 
to  railroad  car  and  vice  versa,  in  a  foreign  country,  with  no  pos- 
sible security  against  violations  of  our  revenue  laws,  through  the 
supervision  of   our  own   customs  officers  acting   in  their  official 
capacity       1  herefore,  I  recommend  that  the  "  transit -trade  "  be 
conhned   to  continuous  rail   movements   in  sealed   cars  without 
breaking  bulk,  in  all   such  cases  the  Canadian   link  being  a  part 
of  a  direct  route  from  the  point  of  shipment  in  the  United  States 
to  the  point  of  delivery  in  the  United  States.     Here  I  would  draw 


12 

the  line.  As  before  stated  such  traffic  embraces  in  itself  "  the 
conditions  of  a  true  reciprocity.'  I  also  regard  this  traffic  as  i^er- 
missible,  for  the  reason  that  the  links  across  the  interjecting  ter- 
ritory of  Canada  aw  such  as  prol>ably  would  have  been  constructed 
by  American  capital,  if  allowed  that  privilege,  in  order  to  com- 
plete direct  through  routes,  in  case  such  links  had  not  been  con- 
structed by  Canadian  capital.  It  is  for  these  reasons  that  I  oppose 
any  interference  with  the  "  transit  trade  "  between  different  points 
in  the  United  States  over  Canadian  lines  east  of  Sault  Ste.  Marie. 

3.  I  recommend  that  no  attempt  be  made  to  enforce  the  "  long 
and  short  haul  rule"  against  American  railroads  engaged  in  com- 
petition with  Canadian  government  railroads  and  sustained  by  it 
in  their  efforts  to  direct  American  commerce  from  Ainerican  lines. 
Such  enforcements  of  that  rule  would  operate  directly  as  an  aid 
to  the  Canadian  government  in  its  raid  upon  American  commerce, 
and  I  hesitate  not  to  characterize  it  as  unwise,  unpatriotic,  and 
unjust. 

Under  every  form  of  government,  from  the  famih  to  the  State, 
the  exercise  of  restraint  implies  the  duty  of  protection,  and  in  all 
great  questioning  this  rule  commends  itself  to  the  inherent  honesty 
and  integrity  of  the  American  mind.  Upon  no  other  principle 
can  our  railroads  be  justly  or  beneficially  regulated. 

CoNCi-UDiNG  Remarks. 

And  now  in  conclusion  I  would  say,  let  not  the  question  of 
principle  involved  in  this  subject  be  lost  sight  of  in  considering  it 
in  its  economic  and  commercial  aspects.  That  would  be  dis- 
creditable to  us  as  a  nation.  The  very  thought  of  allowing  the 
Dominion  of  Canada  to  interfere  in  any  manner  with  the  course 
of  our  material  development  is  upon  its  face  absurd.  The  pride 
and  self-respect  of  this  nation  revolt  at  it.  Rather  must  the  LTnited 
States  by  a  loyal  fidelity  to  those  conditions  which  constitute  the 
muniments  of  its  greatness  and  power  exercise  a  paramount  in- 
fluence over  the  commercial  development  of  this  continent.  Amer- 
ican statesmen  who  fall  below  this  mark  will  fail  to  meet  the 
demands  of  "  a  proud,  expectant  nation."  But  there  need  be  no 
fear  of  failure  here.  The  whole  subject  of  Canadian  aggression 
has  been  referred  to  an  able  committee  of  the  Senate  of  the  United 
States,  and  it  is  earnestly  to  be  hoped  that  that  body  will  be  guided 
to  such  conclusions  as  shall  be  conformable  to  the  interest  and 
mission  of  the  United  States  on  this  continent  and  at  the  same 
time  be  just  to  Canada. 

JOSEPH  NIMMO.  Jr. 


^'\ 


